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FLOWER POWER: SWISS FLORISTS HOPE TO BLOOM AFTER LOCKDOWN

Fleuriot Fleurs probably won’t see a rush of customers when it opens on Monday for the first time since Switzerland went into lockdown. But manager Louise Barradi doesn’t have time to worry about a slow pickup just yet.

“We have been under water, we have had so many deliveries,” she said.

The Geneva-based florist has received about 200 orders a day from online customers during the month-old shutdown, with the best sellers being tulips and peonies. One client even spent CHF 1,500 to spruce up their home.

Online sales have proven to be a vital channel for many florists to offset losses from the closure of big clients like restaurants and hotels. Those businesses will remain closed Monday as Switzerland begins relaxing its coronavirus control measures.

Blumen Schipfe, in Zurich’s city center, has been online for over two decades. Most of its orders now come from regulars who either phone in or e-mail in their orders.

“Business has been incredibly good,” said owner Martin Abplanalp. “People are in absolute need of something colorful on their tables during the lockdown.”

Switzerland is home to about 1,500 florists employing some 5,000 people, according to estimates from florist.ch. Urs Meier, who heads the association, says the pandemic will hit the smaller players the hardest.

“Those who have not taken advantage of their opportunity to deliver, and who have not gained new sales channels and customers, will have a difficult time,” he said.  “The economic situation of small and medium-sized flower shops has been precarious for a long time.”

BlütenBlatt in Lucerne won’t be opening on Monday. Owner Priska Trautwein says it’s not economical because the store is too small to safely accommodate many customers. She, too, has had to rely on online orders to keep the business going, delivering more than 200 orders over the Easter weekend.

A fresh start 

Florist.ch has set out guidelines for florists opening their doors on Monday. This means practicing social distancing of two meters in the waiting area, limiting one staff member to every 10 square meters, and having a protective screen at the checkouts. It also includes putting up health posters and providing disinfectant for customers and employees.

Fleuriot Fleurs will start with a slimmed-down workforce—from 45 to about 15 people. It plans to offer more plants for exteriors next week, as people spend more time on their terraces and balconies.

“We do not expect very many customers, at least for the time being,” Meier said. “This is contrast to DIY stores and garden centers, where I think that a lot of customers will turn up.”

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Why you can’t trust coronavirus counts
At least 613 people have tested positive for coronavirus in Switzerland, but that number isn’t a reliable measure of the outbreak. The Swiss government is abandoning efforts to keep a precise count of coronavirus cases to focus instead on easing the burden on the healthcare system and protecting the most vulnerable—the elderly and those with preexisting conditions. “The government has decided that they will only test people who are at risk, who have strong symptoms,” said Michael Hengartner, president of the ETH Board. “Young people, who might have weak symptoms, will simply be asked to stay at home to minimize contagion.” The Cantonal Hospital of Lucerne has received a recommendation from the government to limit testing to the most vulnerable or severe cases, said spokesman Markus von Rotz. “Only patients who are hospitalized and health care staff will be tested for coronavirus,” said Claude Kaufmann, a spokesman for Hirslanden Private Hospital Group, which operates 17 hospitals. “Patients with fever and cough must stay at home so that they do not infect anyone.” The Swiss Federal Office of Public Health confirmed that the cases could be far higher than reported and that “people at especially high risk are tested as a priority.“ No test, no infection This raises the question of whether the count reflects the true scale of the outbreak. Many people have been keeping tabs on the daily tally from the federal health office, relying on it to provide a measure of the severity of the situation in Switzerland. The country reported its third coronavirus death Tuesday as the outbreak worsens in neighboring Italy, which has logged over 9,000 infections and 460 deaths. It also marks a change in strategy from the early days of the outbreak, when the government ramped up testing following the first confirmed case on Feb. 25. Back then, even mild cases were being counted and traced in the effort to contain the crisis. The Swiss Federal Council said Friday that tracing the infection would continue “as long as possible.” At the same time, it indicated that protecting people by minimizing contact—at work or social events—was now the bigger priority. Large events have been banned across the country but, unlike in Italy, no blanket travel restrictions have been imposed. And the Swiss border remains open to commuters from Italy.  “With the infection rate that this virus has, it will basically cross across the human population,” Hengartner said. “It will become a pandemic. And the challenge for governments is to keep the infection rate low enough that we can always manage the patients that need to get hospitalized.”

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COVID-19 may tip world into financial crisis, UN warns
The world is vulnerable to a financial crisis if the coronavirus epidemic drags on because it is already so deep in debt, the United Nation’s trade body warned in a report on Monday. An enduring health emergency will likely trigger margin calls, tighten borrowing conditions, and increase the risk of a stampede to sell assets not hit in the first round of market turmoil, the UN Conference on Trade and Development said. “This raises the prospect of a credit crunch in a period of high indebtedness,” despite very low interest rates, the report says. Hopes of a recovery will hinge on sustained and coordinated liquidity injections by central banks, more active fiscal policies, and renewed efforts to bolster trade. “Central banks should do whatever it takes in the face of the COVID-19, including directing credit for production and employment,” UNCTAD said. The world has been on a borrowing binge since the 2008 meltdown, when central banks pumped vast sums into cash-strapped markets and banks to shore up the system. At the start of 2020, total debt stocks exceeded more than $250 trillion, about three times global gross domestic product, according to the Institute of International Finance. Developing countries most at risk Developing countries are particularly vulnerable to a credit crunch, as many are already struggling with the highest debt levels on record. “For many developing countries that are facing debt distress already, I think we’re going to have to look at more radical solutions,” Richard Kozul-Wright, who oversees globalization and development strategies at UNCTAD, said in an interview Monday with CNNMoney’s Kasmira Jefford. “The need for a moratorium on debt servicing in some countries will also be necessary.” Economists have warned for years that such massive debt is a risk for the global economy. Record-low interest rates in countries around the globe have made it easier and cheaper for corporates, individuals, and governments to borrow. Last week, the U.S. Federal Reserve, which cut rates three times last year, slashed them by half a percentage point in response to the economic threat from COVID-19. The European Central Bank meets this week, and markets are pricing in a much smaller cut, given that rates are already in negative territory. There is also speculation that the ECB is preparing measures to provide liquidity to businesses hit by the outbreak.

More women in Swiss boardrooms
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